The company says it has satisfied all regulatory conditions required under the merger agreement after securing clearances in 68 countries. The only remaining obstacle is litigation brought by California and 11 other US states.
Paramount Skydance Corporation confirmed that it has obtained all regulatory clearances required under the merger agreement to proceed with its proposed acquisition of Warner Bros. Discovery (WBD).
The eight-month review process involved competition authorities in 68 countries, including the European Union, the United Kingdom, Australia, Canada, Brazil, China, COMESA and the United States. Mexico was the latest country to clear the transaction.
Paramount said regulators assessed the deal based on the current competitive dynamics of the global entertainment industry and consistently found no grounds to block the transaction.
In the United States, the Department of Justice had already concluded its antitrust review, determining that the transaction was unlikely to harm competition or consumers across areas including streaming, linear television, and film production and distribution.
According to Paramount, the closing of the transaction is now subject only to litigation brought by 12 U.S. state attorneys general, led by California.
We are grateful that competition authorities in nearly 70 jurisdictions worldwide have independently and thoroughly reviewed this transaction and reached the same conclusion: it is pro-competitive, pro-consumer and pro-worker,” said David Ellison, CEO of Paramount.
The executive said the lawsuit brought by California and 11 other states represents the “final obstacle” to completing the transaction, arguing that the combination would create a stronger competitor with greater capacity to invest in premium content, support creative talent and workers, and deliver more high-quality entertainment to audiences.
Paramount has urged the state attorneys general to engage in good-faith negotiations to resolve the litigation and clear the way for the transaction to close. Ellison added that the company remains willing to work constructively with the states and consider commitments and concessions to reach a resolution.
Regulators Challenge Antitrust Arguments
Paramount argues that the conclusions reached by international competition authorities contradict several of the central arguments advanced by the 12 US states, particularly regarding theatrical film distribution, film production and competition in linear television.
In the pay-TV sector, the European Commission and the US Department of Justice recognized streaming as a significant competitive force for linear networks, rather than viewing competition exclusively through a cable-versus-cable lens.
In theatrical film distribution, the Australian Competition and Consumer Commission (ACCC) concluded that the transaction was unlikely to substantially lessen competition and noted that the combined company would continue to face competition from studios including Disney, Sony, Universal, Amazon MGM, StudioCanal and numerous independent providers.
Brazil’s competition authority, CADE, treated film distribution as a single relevant market, without the additional segmentation between higher- and lower-grossing films proposed by the U.S. state attorneys general.
Paramount also highlighted findings from COMESA, the competition authority covering Eastern and Southern Africa, which described the theatrical film market as highly competitive, dynamic and driven by the performance of individual titles.
Film Production
Regarding the potential impact on film output and quality, Paramount said regulators found no basis for claims that the transaction would lead to a reduction in content production.
The company also pointed to its commitment to release at least 30 high-quality films annually once the businesses are combined.
According to Paramount, regulators across multiple markets examined key aspects of the transaction, including theatrical distribution, film production, streaming and content licensing, without identifying antitrust concerns that would warrant blocking the deal.
Paramount said the findings across the 68 jurisdictions support its position that the transaction is lawful and does not raise significant competition concerns.
US Litigation Remains Final Obstacle
Despite securing regulatory clearances across international markets, the transaction remains subject to litigation brought by the 12 US states. Paramount said the lawsuit is generating additional costs and delaying the closing of the deal.
The company has publicly indicated that it is open to reaching an agreement with the states to resolve the dispute. The litigation now represents the main remaining regulatory and legal hurdle to the acquisition of WBD.
The transaction, announced in February 2026, would see Paramount acquire Warner Bros. Discovery for US$31 per share, in a deal valued at approximately US$110 billion on an enterprise-value basis. The companies plan to combine their production, streaming, television and entertainment assets to create a global media group.
